Chapters 2 OBLIGATIONS OF PARTNERS Section 1 - Obli among Partners 1784-1809

Question 1

TRUE OR FALSE. When the capital or contribution of the partner will consist of goods, its value or appraisal must be made by experts based on the current prices only.

Answer 1

FALSE. IT SHALL BE BASED ON THE AGREEMENT OF THE PARTNERS BUT IN THE ABSENCE OF SUCH STIPULATION THEN IT IS BASED ON THE CURRENT PRICES.

Question 2

It is one in which no term of existence has been fixed and which may be terminated at the will of the partners.

Answer 2

PARTNERSHIP AT WILL

Question 3

TRUE OR FALSE. A partnership begins at the execution of the contract unless otherwise stipulated.

Answer 3

TRUE

Question 4

TRUE OR FALSE. An industrial partner can engage in any business for himself even without the stipulation of the partners, and he may be either excluded from the partnership with rights to damages by the capitalist partners or the latter may enjoy the benefit he may have obtained.

Answer 4

FALSE, HE IS NOT ALLOWED AT ALL TO ENGAGE IN ANY BUSINESS.

Question 5

What are the liabilities of the partners for their promised contribution to the partnership?

Answer 5

1. He is liable to deliver his contribution at the date he promised to deliver in the partnership or at the beginning of the partnership.
2. He is liable for the warranty or to answer for the eviction or removal of the specific thing he promised to contribute which the partnership has no ownership over the said thing.
3. He is liable for the fruits of the specific thing whose delivery he delayed at the date he is obligated to deliver it to the partnership even without demand from the partners.
4. He is obligated to take care of the specific thing with the diligence of a good father until the specific thing is in the hands of a partnership.
5. He is liable to indemnify the damages caused by the delay in delivering his promised contribution.

Question 6

TRUE OR FALSE. When a contract for a fixed term is continued after the termination of the period without any express agreement, the rights and duties of the partners remain the same as they were at such termination.

Answer 6

FALSE. They may continue with the same rights and duties of the partnership at will.

Question 7

TRUE OR FALSE. Every partner is a debtor of the partnership for whatever he may have promised to contribute thereto.

Answer 7

TRUE

Question 8

TRUE OR FALSE. If the assigned partner to manage the partnership collects a demandable sum of money that was owed to him by a debtor that also owes the partnership, the amount received shall be applied to two credits.

Answer 8

TRUE

Question 9

TRUE OR FALSE. A partner who received his share of the partnership credit becomes insolvent when the other partners did not receive theirs are not obligated to return his share even if he is given the receipt that the amount is his.

Answer 9

FALSE. HE IS OBLIGATED

Question 10

TRUE OR FALSE. In case of imminent loss of the business, each partner is obligated to contribute an additional share to the capital to save the venture, even the industrial partners, if they refused to do so, they shall sell their interest to the other partners.

Answer 10

Industrial partners are not liable to the partnership to contribute an additional share

Question 11

TRUE OR FALSE. A partner who has undertaken to contribute a sum of money and fails to do so becomes a creditor for the interest and damages from the time he should have complied with this obligation.

Answer 11

FALSE. THE PARTNER WILL BECOME A DEBTOR OF THE PARTNERSHIP FOR HIS CONTRIBUTION.

Question 12

Requisites when the amount collected by the managing partner is applied to two credits.

Answer 12

1. Two existing debts
2. Both are demandable
3. The partner who collected the demandable sum of money is the one who manages the business.

Question 13

TRUE OR FALSE. General rule - each partner in the partnership shall contribute equal shares unless otherwise stipulated (1790)

Answer 13

TRUE

Question 14

TRUE OR FALSE. The profit and losses of the partnership shall be distributed based on the agreement only.

Answer 14

FALSE.

Question 15

TRUE OR FALSE. The risk in the specific and determinate thing contributed by the partner for its use and fruits to the partnership and it is not fungible, shall be borne by the partnership.

Answer 15

FALSE. IT SHALL BE BORNE BY THE PARTNER.

Question 16

TRUE OR FALSE. Every partner is responsible for the damages he caused through his fault in the partnership but he may compensate them with the profits and benefit which he may have earned for the partnership.

Answer 16

FALSE. THE GENERAL RULE IS HE MAY NOT COMPENSATE IT WITH THE PROFITS OR BENEFITS HE MAY GAIN BUT THE COURT MAY LESSEN HIS OBLIGATION IF THERE IS AN UNUSUAL INCREASE IN THE PROFIT OF THE PARTNERSHIP AFTER HIS EXTRAORDINARY EFFORT.

Question 17

TRUE OR FALSE. The designation of the profits and losses may be entrusted to the partners. (1798)

Answer 17

FALSE. IT SHALL BE ENTRUSTED TO THE 3RD PARTY.

Question 18

TRUE OR FALSE. If 2 or more partners have been entrusted with the management of the partnership but they are no specification of their duties or without the stipulation that they may not act separately, one of them may not act but if one of the managing partners opposes the decision of another, the majority of the vote shall prevail. (1801)

Answer 18

FALSE. EACH MANAGING PARTNER MAY ACT SEPARATELY AS LONG AS THERE IS NO STIPULATION IN THEIR DUTIES AND NO STIPULATION IF THEY SHALL NOT ACT.

Question 19

TRUE OR FALSE. If there is a stipulation that none of the managing partners may act without the consent of the other managing partner but if there is an imminent danger of grave for the partnership, they may execute the act even without the consent of one partner. (1802)

Answer 19

TRUE

Question 20

TRUE OR FALSE. Any partner may associate with another person in his share in the partnership and may admit the person even without the consent of the others.

Answer 20

FALSE. HE MAY NOT ADMIT AND ASSIGN HIS SHARE WITHOUT THE CONSENT OF THE PARTNERS

Question 21

TRUE OR FALSE. Any partner shall have the right to a formal account as to partnership affairs if he is wrongfully excluded from the business, the right exists under the agreement, 1807, circumstances that are reasonable and just for them to access the accounting.

Answer 21

TRUE

Question 22

TRUE OR FALSE. Any partner may not account for the partnership for any benefit or profits derived from him even with the consent of the partners.

Answer 22

FALSE HE SHALL ACCOUNT THE PROFIT OR BENEFITS HE OBTAINED IN RELATION WITH THE PARTNERSHIP TO THE BUSINESS.

Question 23

TRUE OR FALSE. Any capitalist partner can engage in a business similar to the industry of the partnership in their own account. (1808)

Answer 23

FALSE. HE MAY NOT

Question 24

TRUE OR FALSE. General rule - During the existence of a partnership, a partner is not entitled to a formal account of the partnership affairs. (1809)

Answer 24

TRUE

Question 25

TRUE OR FALSE. The partnership books shall be kept at the principal place of the business and can be accessed at a reasonable time.

Answer 25

TRUE

Question 26

TRUE OR FALSE. Partners shall render true and full information of all things affecting the partnership to any partner and to the legal representative of the deceased or partner with a disability only when there is a demand (1806)

Answer 26

FALSE. EVEN WITHOUT DEMAND.

Question 27

What rules shall be observed when there is no stipulation on the manner of management?

Answer 27

1. All partners are an agent and their acts bind the partnership. 2. Without stipulation, none of the partners may make changes or alterations to the immovable property.

Question 28

TRUE OR FALSE. The consent need not be express and it may presume from the fact of knowledge of the alteration without objection.

Answer 28

TRUE

Question 29

TRUE OR FALSE. Industrial partners are exempted from the loss of the partnership even when it has contractual debt and its assets are not sufficient enough to satisfy its obligation, then the creditors may compel the capitalist and industrial partners to pay by their individual property.

Answer 29

FALSE. THE INDUSTRIAL PARTNER IS LIABLE TO CONTRIBUTE WHEN THERE IS A CONTRACTUAL DEBT AND THE PS CREDITOR COMPLIED THE PARTNERS TO PAY.

Question 30

TRUE OR FALSE. The stipulation wherein one or more partners are excluded from any share in profits and losses is void.

Answer 30

TRUE

Question 31

TRUE OR FALSE. The appointed manager in the articles of the partnership may execute all the acts despite the opposition of his partners unless he acted in bad faith but his powers are not irrevocable even with the votes of the partners.

Answer 31

FALSE. HIS POWER IS IRREVOCABLE

Question 32

TRUE OR FALSE. General rule - the appointed manager shall receive compensation for the time and skill he invested in managing the business.

Answer 32

FALSE

Question 33

TRUE OR FALSE. General rule - The partner appointed as manager has all the powers of a general agent as well as all the incidental powers necessary to carry out the object of the partnership in the transaction of its business.

Answer 33

TRUE

Question 34

What are the exemptions where the appointed manager may receive compensation?

Answer 34

1. When he engaged by other partners to perform the duties he is not required to do and beyond his capacity. 2. There is extraordinary neglect by another partner to perform their duties and passed the burden to the managing partner. 3. When the other partner employed the other to do work for him outside the partnership. 4. When the managing partner devoted his whole time to the management while the others are not giving time to the partnership. 5. Partner who is exempted by the terms of partnership from rendering service.

Question 35

How do partners distribute the profits and losses of the partnership to themselves?

Answer 35

1. Based on their agreement 2. If there is no stipulation, but has an agreement in distributing the profit, it applies the same to the distribution of losses. 3. If there is no stipulation about the distribution of profits and losses, it shall be based on the contribution of the partners, the industrial partner is exempted from losses.

Question 36

How do partners distribute losses?

Answer 36

1. Based on their agreement. 2. Based on the agreement in distributing profits. 3. If no stipulation in shares of profits and losses, the loss shall be borne by the capitalist partner,s and industrial partners are exempted.

Question 37

How do partners distribute profits?

Answer 37

1. Based on their agreed ratio 2. If there is no stipulation: a. Pure capitalist partner - based on their contribution. b. Capitalist and Industrial partner - based on the profit for his service and the remaining amount will be divided according to their contribution. c. Capitalist-Industrial partner - He gets the profit for his service and for the contribution he made in the partnership.